Carlyle-ARA JV acquires UK logistics portfolio for $139m

Private equity giant Carlyle Group and ARA Dunedin, a unit of Singapore’s ARA Asset Management, announced that their joint venture has acquired 11 logistics assets in the UK for £102 million (about $139 million).

The JV, established in March 2021, purchased the portfolio of logistics assets from Moorfield Real Estate Fund IV, the fourth real estate fund of PE investor Moorfield Group, according to the announcement.

The portfolio comprises 11 distribution logistics assets with a total lettable area of 1 million square feet. The portfolio, located in the southeast and northwest regions of England, is currently fully leased.

“The portfolio consists of highly complementary assets to our existing footprint, and the acquisition exemplifies our strategy of identifying well-located assets in the European distribution logistics market, which continues to be an asset class with attractive fundamentals and benefitting from strong structural trends,” said Anssi Halonen, managing director on the Carlyle Europe Realty advisory team.

The new logistics portfolio adds to the Carlyle-ARA joint venture’s nine logistics assets that were acquired in March this year. Equity from the latest investment came from Carlyle Europe Realty (CER) platform, Carlyle’s pan-European real estate strategy, and ARA Dunedin.

According to the announcement, European logistics is a core focus for CER given the sector has proved resilient throughout the Covid-19 pandemic and continues to benefit from the growth in e-commerce resulting in higher delivery volumes.

ARA Dunedin is a specialist UK real estate investor and active asset manager with more than 20 years of experience across product strategies and asset sectors, with a focus on value add and performance optimisation. In 2019, Dunedin joined with Singapore’s ARA Asset Management to create ARA Dunedin.

In August, ESR Cayman Ltd agreed to acquire ARA Asset Management for $5.2 billion, in a deal that creates Asia Pacific’s largest real estate fund manager. The assets under management of the combined entity will be $129 billion.

Read MoreCarlyle-ARA JV acquires UK logistics portfolio for $139m

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